SSWL Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹1,321 Cr
verified against source
Revenue YoY
23%
reported change
EBITDA
₹128 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Steel Strips Wheels delivered 23% revenue growth to ₹1,321 crore in Q3 FY26, driven by record monthly sales in November-December and robust domestic demand across commercial vehicles (+16% industry growth), tractors, and aluminium wheels. EBITDA grew 8% to ₹128 crore, though margin contracted 129bps YoY to 9.69% due to the high-margin US export business being compromised by 300-400 crore annually from tariff uncertainties. The aluminium segment contributed 37% of revenue and the company is operating at near-full capacity utilization across all domestic segments. Management guided to ₹6,000 crore FY27 revenue (base case, +20% growth) with potential to ₹6,500 crore if US tariff situation normalizes and competitors face anti-dumping investigations. Capex of ₹420 crore is planned for Bhuj expansion (aluminium wheels + knuckles), funded by mix of debt and internal accruals. Key risk: the company acknowledged underperformance versus auto sector peers in stock returns, attributing this to market sentiment around tariffs rather than fundamental business issues.
Colored figures show movement against the previous available record.
Guidance to track
- Management projects 20% revenue growth to ₹6,000 crore in FY27 from existing assets, driven by tractor, truck, and aluminium wheel segments. With US tariff normalization and anti-dumping duties on Thailand/Vietnam competitors, upside to ₹6,500 crore is visible.
- New facility at AMW acquired site will add 1.2M aluminium wheel capacity and 0.6M knuckle capacity. Total expansion cost ₹420 crore plus ₹40 crore annual maintenance capex. Facility expected to start operations around Diwali 2026 with commercial supplies by December 2026.
- Management targets ₹300 EBITDA per wheel in coming quarters, up from current ₹260, driven by capacity utilization at 100%, better product mix from high-value aluminium and tractor wheels, and recent pricing negotiations with OEMs.
- All domestic segments (CV, tractor, aluminium wheels) operating at 100%+ utilization. Q4 expected to deliver record production and sales with March monthly revenue targeting ₹500 crore.
Risks flagged
- 300-400 crore annual revenue from US steel wheel exports remains at risk due to ongoing tariff-related uncertainties. Management expects resolution in 3-6 months but cannot control timing.
- An analyst questioned a drop in MHCV market share from 61% to 52%, which management disputed, stating actual share is 62%. This discrepancy in reported market share data was not fully resolved during the call.
- EBITDA margin declined 129bps YoY to 9.69% despite 23% revenue growth. While attributed to raw material pass-through lag and mix shift, PAT growth has been sluggish at around ₹50 crore quarterly run-rate for extended periods.
- Management acknowledged frustration that SSWL has underperformed auto sector stocks despite delivering growth, attributing it to negative sentiment from Q2 performance and US tariff concerns rather than fundamental issues.
Key quotes
- This is the first time that all my assets are being utilized 100% barring a small portion of the export market and we are running at more than 100% utilization. That's the kind of demand. We have never seen this demand earlier.
- The Trump tariffs really spoiled the party for us. But notwithstanding that party getting over, we have found a lot of business and value addition in India itself and we are now utilizing 100% of our capacity.
- We concluded a turnover of 6,000 crore. I think 20%, majority of this growth is coming from tractors, trucks and aluminium. So aluminium would be number one. Then it will be followed by trucks and then tractor.
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